Oil Declines From Two-Year High as Stronger Dollar Trims Demand
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Oil declined from its highest level in two years as the dollar strengthened against the euro, curtailing crude’s appeal as a protection against inflation.
Futures advanced to $87.49 a barrel, the highest level since Oct. 9, 2008, before dropping as the euro fell on concern that Ireland will struggle to plug its budget deficit. Hedge funds increased bullish bets on oil to the highest level since at least June 2006, data from the U.S. Commodity Futures Trading Commission showed last week, even before the Federal Reserve said it will boost debt purchases to revive the economy.